A file picture of the Schubart Park complex. Picture: African News Agency (ANA)
Pretoria – The landlord of Parkview Units ‒ one of three housing complexes which have been accommodating former Schubart Park residents ‒ wants to evict the more than 300 people staying there.
The buildings have reportedly been vandalised to such an extent that it is becoming inhabitable and dangerous.
Singyung Investments turned to the Gauteng High Court, Pretoria, asking for an order that the City relocated the residents and that they, as the landlord, may evict the residents. The application is due to be heard this week.
According to the landlord, the agreement it reached with the City to house the Schubart Park residents, has long ago lapsed. The building owners said they were unable to manage the residents.
The company accused the residents of coming and going as they pleased, and that it was not clear who was legally there as part of the initial Schubart Park group, and who had simply moved in over the years.
It has meanwhile emerged from court papers that the City ‒ as per monthly invoice from the landlord ‒ is paying the landlord about R1 700 a month in rent per person staying there.
This is despite the uncertainty of how many of the original Schubart Park group are still staying there and whether the City is subsidising unknown people.
In an affidavit filed by the City, it emerged that for example, the invoice it received from the landlord for November 2019 was for 373 people. That month alone, the metro had to fork out R634 000 as well as R22 600 for security services.
While the landlord wants to get rid of the people, the City is opposing this, saying there is a tripartite agreement in place which the landlord must honour.
Singyung Investments is disputing this and said it is unable to manage the unruly elements. The City, in its papers, said as landlord the applicant was obliged to manage the building, including access control and other identifying measures to ensure that there were no illegal occupants.
The former Schubart Park residents were relocated to, among others, the Parkview Units after the four Schubart park buildings in the CBD became uninhabitable.
The buildings were hijacked by unauthorised people and a fire broke out. As it was too dangerous for them to continue living there, the City negotiated with the Schubart Park Residents Association to temporarily relocate them.
The City has, however, over the years, not yet refurbished the damaged buildings and it is unknown what will happen with the buildings, and when, or if, the residents will be able to move back.
Hercules Bye, who represents the landlord, said in an affidavit, it has become extremely difficult to control or identify the occupants, as they fluctuated and changed on a daily basis.
He said the vandalism was costing them a lot of money, and the rent the City is paying ‒ and refusing to increase ‒ is barely covering the running costs.
According to him, the initial agreement between the landlord and the City has in any way lapsed, which renders the occupying of the building by these residents unlawful.
But Simon Sithole of the City’s legal department said there is a tripartite lease agreement in place, which the landlord must honour.
He said issues regarding access to and control of the building formed part of the agreement as the City made it clear that it is not in a position to manage the building. Thus, he said, the landlord must keep tabs on who leaves and who stays in the building.
Sithole said the City cannot be blamed for the problems at the building, as it is paying the invoices in accordance with the lease agreement. As there is an agreement in place, the landlord also cannot evict the residents, he said.
Simon Dippenaar & Associates Inc. is alaw firm in Cape Town, Johannesburg and Durban, offering highly specialised eviction services to landlords, property agents, and investors. Our eviction lawyersrepresent legal interests with uncompromising dignity. For more on how to legally evict a tenant, click here. Contact one of our Cape Town lawyers, or other partners across South Africa, by calling 086 099 5146, or 076 116 0623, or email simon@sdlaw.co.za.
This article, from the Personal Finance section of Independent Online, is a clear and helpful explanation of the purpose of the rental security deposit.
Following a period of lockdown restrictions that put severe pressure on the income levels of many households, some landlords have had to go through the costly process of applying for a court order to evict defaulting tenants. Adrian Goslett, regional director and chief executive officer of RE/MAX of Southern Africa, explains that the rental deposit exists largely to protect the landlord against defaulting tenants and the lengthy, expensive process that is involved to evict them.
According to Goslett, tenants are protected by the Prevention of Illegal Eviction from Unlawful Occupation of Land Act, No. 19 of 1998, also known as the PIE Act. If the correct procedures are followed, it can take at least eight to 10 weeks for an eviction order to be granted during which time the landlord is out of pocket. “Besides the fact that the landlord is not getting a rental income from the defaulting tenant during that period, they will also have to pay legal costs. An unopposed eviction could cost between R12 000 and R20 000 in legal costs plus disbursements, while the cost of an opposed matter will be substantially more. Section 5 of the Rental Housing Act, No. 50 of 1999 states that a landlord is legally entitled to request a deposit from their tenants. This deposit can be used to help cover these legal costs,” he explains.
With this in mind, most landlords request a deposit from their tenants before they move into the property. The amount that the tenant will be required to pay as a deposit is stipulated in the lease agreement. Conventionally, the rental deposit amount is equal to anywhere from one to even three months’ rent.
“When a tenant pays the deposit, the landlord is required by the Rental Housing Act to place the money in an interest-bearing account, held with a financial institution. The tenant is within their rights to request a statement of the interest earned on the money at any time during their tenancy. Even though the deposit is paid to the landlord, it remains the tenant’s money. The landlord is merely holding the money as a security measure, should the tenant default or breach the rental agreement. If the tenancy runs its normal course, the deposit along with all interest earned on the money must be paid over to the tenant at the end of the lease agreement period,” says Goslett.
However, he warns that the landlord is entitled to deduct from the rental deposit any expenses incurred repairing any damage to the property which occurred during the tenancy. “The remainder of the money must then be refunded to the tenant no later than 14 days after the restoration of the property as dictated by the Act. If repairs are done, the tenant can request to see all repair receipts to confirm that the money was spent to repair the damage they did to the property. The landlord cannot use the deposit for general maintenance or upkeep of the property. If there is no damage to the property, the full deposit and interest must be paid to the tenant within seven days of the lease’s expiration date,” he explains.
Should any disputes arise between the landlord and the tenant regarding the rental deposit, Goslett recommends they can turn to the province’s Rental Housing Tribunal. “The tribunal assists to mediate and resolve disputes between the parties. Before entering into a rental agreement, both the tenant and the landlord should familiarise themselves with their legal rights regarding the tenancy and the rental deposit. Knowledge of the relevant procedures can help prevent unpleasant and costly disputes down the line,” he said.
Links added by SD Law.
Do you have questions about your lease agreement or rental deposit?
Whether you are tenant or landlord, if you have questions or concerns about your existing lease agreement or security deposit, contact Eviction Lawyers for a confidential discussion. We will explain your rights and responsibilities to ensure a worry-free tenancy. Contact Cape Town lawyer Simon Dippenaar now on 086 099 5146 or email him on info@sdlaw.co.za.
